Someone that has been injured in an accident has the right to file a personal injury claim with the insurance company of the responsible party. How does the insurer at the same company determine the worth of the submitted claim?
The insurer gives a company employee the job of determining a given claim’s worth.
The employee that gets assigned a particular claim by the insurer is the insurance adjuster or claims adjuster. While attacking the claim that was assigned to him or her, the adjuster, takes specific factors in to consideration.
Adjusters realize that each claimant must be compensated for his or her known losses.
Adjusters also understand that if the claim were to be honored by the company, then the money used to compensate the claimant would come from the funds that are handled by the insurer. An adjuster’s experience has taught him or her that whenever victims file a claim, each of them expects to get reimbursed for medical expenses, loss of wages, any acquired disability or disfigurement, loss of social and educational experiences, pain and suffering, and damage to any personal property.
Most of the losses have an obvious monetary value.
Those are called economic damages. The medical expenses make up the bulk of the economic damages. The adjuster can add up the total for the medical expenses as per personal injury lawyer in St John’s.
An adjuster’s experience does not provide him or her with the ability to assign a monetary value to the claimant’s pain and suffering.
Adjusters use a special formula to estimate the worth of that pain and suffering. That formula calls for selection of a number that must function as a multiplier. That multiplier could be as small as 1.5, or as large as 5 or more. The nature of the claimant’s injury determines the multiplier’s value. When claimants’ injuries are minor in nature, a 1.5 goes into the adjuster’s formula. Whenever claimants’ injuries could qualify as catastrophic, a number above 5 might get used in that particular formula.
Each of the selected multipliers becomes a factor in a multiplication operation. The other factor is the sum of the medical expenses. Following the completion of that multiplication operation, the result gets added to the figure representing the claimant’s loss of wages.
The result of that addition operation yields the adjuster’s desired number. That is just an estimate for the worth of the submitted claim. Adjusters’ quest for that particular number reflects their need to arrive at a starting bid for negotiations. By calculating the estimated worth, an adjuster has acquired the figure that an insurer is waiting to see. Insurers often calculate a percentage of the figure that has been shown to them. That calculation suggests the initial bid.